MADISON - One Blanchardville man was sentenced and another was indicted Wednesday in connection to the 2003 closing of First National Bank of Blanchardville (FNBB).
Bryan J. Severson, 34, was sentenced to more than 11 years in prison and ordered to pay restitution in the amount of $6.43 million for bank fraud, misapplication of bank funds, money laundering, aiding and abetting of false statements with an insured institution, perjury, obstruction of an audit and mail fraud.
Severson engaged in a scheme with Mark R. Hardyman, former president at FNBB, to defraud the bank.
Court records indicate Hardyman and Severson used hundreds of thousands of dollars in bad checks to hide the true balance of Severson's accounts from a federal review of the bank, the indictment said.
According to United States Attorney Erik C. Peterson, Severson had several personal and business accounts at the bank. During the time of the fraud scheme, Severson owned and/or operated Dane County Towing, Five County Towing and Repair, Five County Motorsports, Five County Transport, Five County Auto Supply, Dells Motor Speedway and Wisconsin Dells Motor Speedway.
Peterson also announced that Dennis O. Said, 63, was indicted by a federal grand jury Wednesday with 39 counts in a scheme to defraud the FNBB while operating Trucks 4 U in Blanchardville.
The indictment alleges that Said received over $6.1 million in fraudulent loans from FNBB and then defaulted on the loans which caused the bank to lose over $3.7 million.
Peterson said the indictment indicates Said caused non-sufficient funds or account closed checks to be deposited into his accounts at the bank and used a non-sufficient funds check to make fraudulent loan payments.
The indictment goes on to say that on six occasions between April 8, 2002 and May 2, 2003, Said assisted Hardyman in the misapplication of funds at the bank and the two men consolidated various bank loans and other loans into an agricultural loan that didn't accurately reflect his true non-farm liabilities.
Said faces up to 30 years in prison for each of the 39 counts.
In July 2006, Hardyman was sentenced to nine years in prison and ordered to pay $13.4 million in restitution. He faced a maximum prison term of 30 years.
Bryan J. Severson, 34, was sentenced to more than 11 years in prison and ordered to pay restitution in the amount of $6.43 million for bank fraud, misapplication of bank funds, money laundering, aiding and abetting of false statements with an insured institution, perjury, obstruction of an audit and mail fraud.
Severson engaged in a scheme with Mark R. Hardyman, former president at FNBB, to defraud the bank.
Court records indicate Hardyman and Severson used hundreds of thousands of dollars in bad checks to hide the true balance of Severson's accounts from a federal review of the bank, the indictment said.
According to United States Attorney Erik C. Peterson, Severson had several personal and business accounts at the bank. During the time of the fraud scheme, Severson owned and/or operated Dane County Towing, Five County Towing and Repair, Five County Motorsports, Five County Transport, Five County Auto Supply, Dells Motor Speedway and Wisconsin Dells Motor Speedway.
Peterson also announced that Dennis O. Said, 63, was indicted by a federal grand jury Wednesday with 39 counts in a scheme to defraud the FNBB while operating Trucks 4 U in Blanchardville.
The indictment alleges that Said received over $6.1 million in fraudulent loans from FNBB and then defaulted on the loans which caused the bank to lose over $3.7 million.
Peterson said the indictment indicates Said caused non-sufficient funds or account closed checks to be deposited into his accounts at the bank and used a non-sufficient funds check to make fraudulent loan payments.
The indictment goes on to say that on six occasions between April 8, 2002 and May 2, 2003, Said assisted Hardyman in the misapplication of funds at the bank and the two men consolidated various bank loans and other loans into an agricultural loan that didn't accurately reflect his true non-farm liabilities.
Said faces up to 30 years in prison for each of the 39 counts.
In July 2006, Hardyman was sentenced to nine years in prison and ordered to pay $13.4 million in restitution. He faced a maximum prison term of 30 years.